Colfax Announces Acquisition of Siemens Turbomachinery Equipment GmbH
9 March 2017
Colfax Corporation, a leading global manufacturer of gas- and fluid-handling and fabrication technology products and services, today announced that it has entered into a binding agreement to acquire Siemens Turbomachinery Equipment GmbH (STE) from Siemens AG for a cash consideration of approximately €195 million.
STE, an innovator in the international turbomachinery business, develops, produces and distributes single-stage compressors and small steam turbines for environmental and industrial applications. The acquisition will be integrated into Colfax's Howden business platform, broadening Howden's range of compression solutions and expanding its product offering into small steam turbines. STE also diversifies Howden's served end-markets and increases its presence in applications with attractive growth potential. For the fiscal year ended September 2016, STE had revenues of €146 million.
"I am delighted to welcome the Siemens Turbomachinery Equipment team to Colfax," said Matt Trerotola, President and Chief Executive Officer of Colfax. "STE's brands reach as far back as 1899, and the business has thousands of satisfied customers and installations around the world. We are excited by the opportunities created by combining STE with Howden's global footprint, continuous improvement culture and aftermarket capabilities. The acquisition expands our end markets and product portfolio in environmental and industrial markets worldwide. We look forward to continuing to innovate and grow together."
"We are very pleased to have entered into an agreement with a prestigious strategic purchaser such as Colfax. Colfax, with its subsidiary Howden, is the ideal purchaser to strengthen the business' overall competitive position. The sale enables the business to successfully expand in its core business of compressor production for numerous applications, including small steam turbines and associated services," said Christopher Rossi, CEO of the Dresser-Rand business, part of Siemens Power and Gas Division.
Closing of the acquisition is expected in the fourth quarter following completion of carve-out activities and fulfillment of customary closing conditions, including receipt of applicable regulatory approvals.
Allen & Overy served as legal advisor to Colfax.